Credit card, home loan originations growth rate decline in Q4FY25, shows TransUnion CIBIL India report

Credit Cards

The loan origination volumes of credit cards and home loans saw a drop of 32 percent and 7 percent, respectively, in Q4FY25 over the same quarter a year earlier, according to a TransUnion CIBIL India report.

Loan origination is the term applied to the application, processing and disbursal of loans.

This is after delinquencies in the credit card space rose, standing 28 basis points (bps) higher on March 31, 2025 compared with March 31, 2024. Balance-level 90+ DPD or more than 90 days past the due date is at 2 percent, as per the report.

Property and two-wheeler loan disbursals saw a dip of 1 percent each in Q4FY25.

The report added that loan originations shifted towards high-ticket segments of the home and two-wheeler loan categories in the fourth quarter of the previous fiscal year.

However, Reserve Bank of India Governor Sanjay Malhotra in the June policy had said that stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio had abated.

However, he added that the stress in the micro-finance segment persists. “Banks and NBFCs (non-banking financial companies) active in these segments are already recalibrating their business models, strengthening their credit underwriting practices and stepping up their collection efforts to avoid any excessive build-up of risks on this front in future,” he said.

Further, the share of new-to-credit (NTC) customers—or those without a credit history, having never taken a loan before—in originations continued to decrease with lenders becoming cautious. As per report, NTC consumers' share stood at 16 percent, down 3 percent points. Similarly, the share of younger consumers fell by 1 percent point to 48 percent.